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JET AIRWAYS STORY
About jet airways
 Founded 1 April 1992
 Commenced operations 5 May 1993
 Frequent-flyer program Jet Privilege
 Airport lounge Jet Lounge
 Subsidiaries Jet Lite
 Fleet size 101 (+49 Orders)
 Destinations 76
 Company slogan The Joy of Flying
 Parent company Tailwinds Limited
 Headquarters Mumbai, India
 Revenue Rs. 145,225.80 million (US$2,897.25 million)
(2010-11)
 Profit Rs.858.40 million (US$-17.13 million)
 Key people Naresh Goyal, Founder & Chairman , Nikos
Kardassis, CEO Ali Ghandour, Director
Key strategies
 Focus on improving service, reliability and on time
performance
 Focus to be the best in ―no frills‖ sector.
 Measures to negate effect of unprecedented increase
in prices of fuel
 Maintain its leadership position in the Indian aviation
industry
 Improve On-time performance it was 88.4% for Jet
Airways for the financial year 2010-11
 Explore the potential for sustained growth in Indian
passenger traffic because of low penetration in the
medium to long term.
 Keep operations and growth in line with expected
Indian economy growth which is around 7% – 8%
per annum
 Manage risk & short term crisis on account of
any global financial risks
 Manage short term spike in crude oil prices.
 Minimize passing the fuel price fluctuation to
customers.
 Network expansion will be around the key focus
specially Gulf and Middle east
Jet Lite
 Jet Lite was a wholly owned subsidiary of Jet
Airways.
 It was established as Sahara Airlines on 20
September 1991 and began operations on 3
December 1993 with two Boeing 737-200 aircraft.
 Initially services were primarily concentrated in the
northern sectors of India, keeping Delhi as its
base, and then operations were extended to cover
all the country.
 Sahara Airlines was rebranded as Air Sahara on 2
October 2000. On 12 April 2007 Jet Airways took
over Air Sahara and on 16 April 2007 Air Sahara was
renamed as Jet Lite.
 Jet Lite operated a fleet of mixed owned–leased
Boeing 737 Next Generation aircraft and Bombardier
Services Destinations
 Jet Airways serves 52 domestic destinations and 24
international destinations, a total of 76 in 19 countries
across southern Africa, Asia, Europe and North America.
Short-haul destinations are served using Boeing 737
Next.
 The Première features 40-inch extra-wide seats with a
personal Widescreen LCD attached to each seat. The
Première cabin is configured in a 2-2 abreast pattern.
 Jet Airways Economy class on its Boeing 737 Next
Generation features 30-inch seat pitch with personal
Widescreen LCD behind each seat. Jet Airways was the
Worlds first airline to introduce in-flight entertainment
systems on the Boeing 737 aircraft.
 The Economy class cabin is configured in a 3-3 abreast
pattern on the Boeing 737 Next Generation and 2-2
strength
 Strong presence & good name in the Indian
Aviation market.
 Taking the plane on lease rather than purchasing.
 Ready made distribution network.
 Innovation in services.
Weakness
 Too many players in the ―no frill category.
 Salaries was not high as compared to other
airlines so difficulty to retain employees.
 Financial not sound as compared to others
airlines industries.
opportunities
 Consolidations in the industry & low market
penetration.
 Untapped air cargo market.
 Scope in global services and tourism.
 Increasing salaries of people.
threat
 Ongoing economic weakness & Fuel prices
Strong competitors
Overseas market competition
Regulations
Threat of New Entrants
 The investment in the airlines is very huge and
acts as a major barrier to entry.
 Existing loyalty to major brands
 Incentives for using a particular buyer (such as
frequent shopper programs)
 High fixed costs
 Scarcity of resources
 High costs of switching companies
 Government restrictions or legislation
Bargaining Power of Suppliers
 There are very few suppliers of a particular
product
 There are no substitutes
 Switching to another (competitive) product is very
costly
 The product is extremely important to buyers -
cant do without it
 The supplying industry has a higher profitability
than the buying industry.
Bargaining Power of Buyers
 Small number of buyers
 Purchases large volumes
 Switching to another (competitive) airline is
simple
 The airline is not extremely important to buyers;
they can do without the same brand for a period
of time
 Customers are price sensitive
Availability of Substitutes
 The main issue is the similarity of substitutes. All
low cost airlines have similar facilities.
 If substitutes are similar, it can be viewed in the
same light as a new entrants
Intensive Competition
 Many players of about the same size; there is no
dominant firm
 Little differentiation between competitors‗
products and services
 A mature industry with very little growth;
companies can only grow by stealing customers
away from company.
THANKYOU

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Jet airways

  • 2. About jet airways  Founded 1 April 1992  Commenced operations 5 May 1993  Frequent-flyer program Jet Privilege  Airport lounge Jet Lounge  Subsidiaries Jet Lite  Fleet size 101 (+49 Orders)  Destinations 76  Company slogan The Joy of Flying  Parent company Tailwinds Limited  Headquarters Mumbai, India  Revenue Rs. 145,225.80 million (US$2,897.25 million) (2010-11)  Profit Rs.858.40 million (US$-17.13 million)  Key people Naresh Goyal, Founder & Chairman , Nikos Kardassis, CEO Ali Ghandour, Director
  • 3. Key strategies  Focus on improving service, reliability and on time performance  Focus to be the best in ―no frills‖ sector.  Measures to negate effect of unprecedented increase in prices of fuel  Maintain its leadership position in the Indian aviation industry  Improve On-time performance it was 88.4% for Jet Airways for the financial year 2010-11  Explore the potential for sustained growth in Indian passenger traffic because of low penetration in the medium to long term.
  • 4.  Keep operations and growth in line with expected Indian economy growth which is around 7% – 8% per annum  Manage risk & short term crisis on account of any global financial risks  Manage short term spike in crude oil prices.  Minimize passing the fuel price fluctuation to customers.  Network expansion will be around the key focus specially Gulf and Middle east
  • 5. Jet Lite  Jet Lite was a wholly owned subsidiary of Jet Airways.  It was established as Sahara Airlines on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft.  Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country.  Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as Jet Lite.  Jet Lite operated a fleet of mixed owned–leased Boeing 737 Next Generation aircraft and Bombardier
  • 6. Services Destinations  Jet Airways serves 52 domestic destinations and 24 international destinations, a total of 76 in 19 countries across southern Africa, Asia, Europe and North America. Short-haul destinations are served using Boeing 737 Next.  The Première features 40-inch extra-wide seats with a personal Widescreen LCD attached to each seat. The Première cabin is configured in a 2-2 abreast pattern.  Jet Airways Economy class on its Boeing 737 Next Generation features 30-inch seat pitch with personal Widescreen LCD behind each seat. Jet Airways was the Worlds first airline to introduce in-flight entertainment systems on the Boeing 737 aircraft.  The Economy class cabin is configured in a 3-3 abreast pattern on the Boeing 737 Next Generation and 2-2
  • 7. strength  Strong presence & good name in the Indian Aviation market.  Taking the plane on lease rather than purchasing.  Ready made distribution network.  Innovation in services.
  • 8. Weakness  Too many players in the ―no frill category.  Salaries was not high as compared to other airlines so difficulty to retain employees.  Financial not sound as compared to others airlines industries.
  • 9. opportunities  Consolidations in the industry & low market penetration.  Untapped air cargo market.  Scope in global services and tourism.  Increasing salaries of people.
  • 10. threat  Ongoing economic weakness & Fuel prices Strong competitors Overseas market competition Regulations
  • 11. Threat of New Entrants  The investment in the airlines is very huge and acts as a major barrier to entry.  Existing loyalty to major brands  Incentives for using a particular buyer (such as frequent shopper programs)  High fixed costs  Scarcity of resources  High costs of switching companies  Government restrictions or legislation
  • 12. Bargaining Power of Suppliers  There are very few suppliers of a particular product  There are no substitutes  Switching to another (competitive) product is very costly  The product is extremely important to buyers - cant do without it  The supplying industry has a higher profitability than the buying industry.
  • 13. Bargaining Power of Buyers  Small number of buyers  Purchases large volumes  Switching to another (competitive) airline is simple  The airline is not extremely important to buyers; they can do without the same brand for a period of time  Customers are price sensitive
  • 14. Availability of Substitutes  The main issue is the similarity of substitutes. All low cost airlines have similar facilities.  If substitutes are similar, it can be viewed in the same light as a new entrants
  • 15. Intensive Competition  Many players of about the same size; there is no dominant firm  Little differentiation between competitors‗ products and services  A mature industry with very little growth; companies can only grow by stealing customers away from company.